First Financial Bankshares has had an impressive run over the past six months as its shares have beaten the S&P 500 by 7%. The stock now trades at $34.93, marking a 13.2% gain. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.

Is now the time to buy First Financial Bankshares, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free.

Why Is First Financial Bankshares Not Exciting?

Despite the momentum, we don’t have much confidence in First Financial Bankshares. Here are three reasons we avoid FFIN, plus one stock we’d rather own.

1. Long-Term Revenue Growth Disappoints

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.

Over the last five years, First Financial Bankshares grew its revenue at a sluggish 5.3% compounded annual growth rate. This was below our standard for the banking sector.

2. Net Interest Income Points to Soft Demand

Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics.

First Financial Bankshares’s net interest income has grown at a 7.4% annualized rate over the last five years, worse than the broader banking industry.

3. EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

First Financial Bankshares’s weak 4.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

Final Judgment

First Financial Bankshares isn’t a terrible business, but it isn’t one of our picks. With its shares topping the market in recent months, the stock trades at 2.3× forward P/B (or $34.93 per share). This valuation tells us a lot of optimism is priced in - we think there are better opportunities elsewhere. We’d suggest looking at our favorite semiconductor picks and shovels play.

Stocks We Would Buy Instead of First Financial Bankshares

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.